Government of India’s commitment to provide ‘Power for All’ and its decision to support green energy transition, marked a new beginning for the country. With solar energy transition promising to save billions ($) in fossil fuel imports, create jobs, initiate technological growth, facilitate industrial growth, and offer the opportunity to claim the export market, developing countries like India need to quickly seize the opportunity and become a solar powered country. And factoring in India’s recent initiatives towards solar growth, we can fairly assume that the country has chosen the right path to social, economic, and industrial revolution, which will illuminate the future of more than 200 million people (who currently live without electricity). Like any industry, there are multiple challenges in countrywide solarisation in India. However, recent taxes and duties levied on growing solar industry must be considered as the biggest challenge in path to India’s most important and impactful transition.
As one of the fastest growing economies, India decisively opted for solar development, understanding its potential to lift the country out of financial, social, and industrial darkness. The announcement of targeting 100 GW solar energy by 2022 evidently created an environment of urgency and brought forth a plethora of opportunities for industrial development. As a result, our country quickly became the second most attractive renewable energy market in the world. However, Government of India’s decision to impose Safeguard Duty on solar imports stands to undo the growth India accomplished through enhancing domestic solar manufacturing capacities. Many in the industry argue that the new policy is completely opposite of what our Solar mission and Make in India initially stood for.
A few years ago, Solar was considered experimental and was a niche industry in the huge sector of energy generation. It is important to note that in 1977, solar panels cost $77 per watt p. However, currently solar modules cost between $0.33-$0.36 cents/per Watt p, which identifies more than 99% fall in prices. Also In 2015, power generation from renewable sources (1,985 GW) surpassed coal based energy generation (1,951 GW). And today, Solar PV panels have garnered a huge demand, resulting in global capacity additions nearly reaching 100 GW in 2017 alone. Countries, developing and developed alike are investing more in renewable energy ($286 billion in 2016) than conventional fossil fuel ($130 billion in 2016). New technologies that support renewable energy adoption like- Battery storage systems are also getting cheaper, paving a path for renewable energy (mainly solar) to become mainstream energy source.
Although the world has accepted solar and are working towards solarisation in an collaborative effort, it is important to note that solar only generates 2% of global electricity. Which is not very impressive if solar is to replace fossil fuels quickly. Mass adoption of green energy is the only way to save our future and climate, both of which are rapidly degrading, due to continuous use of depleting reserves of fossil fuels.